Biogas is combustible gas derived from decomposing biological waste in the absence of oxygen (called anaerobic digestion).
Biogas can be produced from wet or mixed organic waste streams (biomass).
The anaerobic digestion conversion processes utilise natural occurring microbes and biochemical pathways to convert waste into biogas.
During anaerobic digestion about half the carbon content of the biomass is converted into biogas, which can be directly used in a burner/condenser or fed into a gas engine to produce electricity and/or thermal energy (heat).
The rest of the biomass becomes organic slurry which can be used directly as a fertiliser or separated into a liquid and solid phase to produce animal bedding/soil conditioner, liquid fertiliser and recycled water.
The biogas process

Source: http://www.biogasmax.eu/